Reverse Mortgage ⋆ Guthrie Group Homes

Q: Reverse Mortgage

[caption id="attachment_10949" align="alignnone" width="760"] Reverse Mortgage[/caption] What is a Reverse Mortgage ? A financial agreement in which a homeowner relinquishes equity in their home in exchange for regular payments, typically to supplement retirement income. This type of loan is for seniors ages 62 and older. Should you get a reverse mortgage ? While it can be a great way to supplement your retirement income, there are some things to watch out for: ⚠️ High fees To get and finalize your reverse mortgage, you’ll be paying a range of fees that can add up quickly. ⚠️ Variable or high-interest rate The interest rate is often higher than that of a standard mortgage. It may also be variable , rather than fixed, which means it can increase in the future. ⚠️ Less money for your heirs The remaining amount of your estate will need to be repaid when you’re no longer here, usually in a specific period of time, which can be costly and stressful for your family. This is why, in some cases, downsizing can be a better option. If you’re deciding between the two, contact us to discuss your options and make the best choice for your needs.

Reverse Mortgage

Posted by Libby Guthrie

What is a Reverse Mortgage?

A financial agreement in which a homeowner relinquishes equity in their home in exchange for regular payments, typically to supplement retirement income. This type of loan is for seniors ages 62 and older.

Should you get a reverse mortgage?

While it can be a great way to supplement your retirement income, there are some things to watch out for:

⚠️ High fees
To get and finalize your reverse mortgage, you’ll be paying a range of fees that can add up quickly.

⚠️ Variable or high-interest rate
The interest rate is often higher than that of a standard mortgage. It may also be variable, rather than fixed, which means it can increase in the future.

⚠️ Less money for your heirs
The remaining amount of your estate will need to be repaid when you’re no longer here, usually in a specific period of time, which can be costly and stressful for your family.

This is why, in some cases, downsizing can be a better option. If you’re deciding between the two, contact us to discuss your options and make the best choice for your needs.